Corporate finance:
Due diligence
Due diligence is the process of making appropriate enquiries into the company or business you are acquiring or investing in. It serves several purposes:
- You know at the outset what you are getting into, so that there should be no nasty surprises later.
- What you find out may affect the amount you are prepared to pay, or invest, or even whether you want to go ahead with the deal.
- Any legal agreement giving effect to the deal may deny you redress if you later discover something which you should have known if you had carried out appropriate enquiries with due diligence.
Due diligence will typically cover the company’s commercial activities, management and employees, accounting systems and management information, accounting policies, premises, intellectual property rights, assets and liabilities, taxation, trading results, budgets and projections and cash flow forecasts. Some of this will be for you or other advisers (such as surveyors and lawyers) to carry out; but we will carry out all the financial due diligence and often coordinate the whole process.
When you instruct Cassons to carry out your due diligence, you get expertise and experience, clear and concise communication, and the ability to implement a detailed work programme whilst not losing sight of the commercial aspects of the deal.
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Where next?
Within Corporate finance …
- Strategic planning
- Business planning and forecasting
- Funding
- Buying a business
- Management buyout
- Management buy-in
- Benchmarking
- Market research
- Executive recruitment
- Selling a business
- Business valuation
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